EU Slaps Heavy Fines on Apple and Meta for Dominance Abuse
The European Commission fines Apple €1.8 billion and Meta €1.2 billion for violating digital competition rules, reshaping the regulatory landscape for tech monopolies.
Prakhar
In a landmark enforcement move, the European Commission has imposed hefty fines on Apple (€1.78 billion) and Meta (€1.14 billion) for abusing their dominant positions in mobile ecosystems and advertising markets, respectively. The rulings underscore Brussels’ determination to curb platform power and safeguard competitive digital markets across the European Union.
Apple’s App Store Gatekeeping Penalty
Apple was fined for self-preferencing its own apps on iOS, mandating developers to use Apple’s in-app purchase system at a 30% commission while burying rival services. The Commission found Apple’s walled-garden approach stifled app-market competition, blocking alternative payment processors and distorting consumer choice. Apple now has to open up iOS to third-party app stores and allow alternative in-app billing systems.
Meta’s Advertising Data Misuse
Meta (formerly Facebook) received its fine for tying its dominant social-networking services with its ad-tech stack, requiring marketers to buy bespoke “Reach and Frequency” buys exclusively through its system, shutting out rival ad exchanges. The practice inflated ad prices and limited advertiser flexibility. Meta must decouple its ad products, enabling integration with third-party ad platforms.
Immediate and Structural Remedies
Both companies were given six months to comply or face additional periodic penalties up to 5% of global daily revenue. Beyond fines, the EC’s orders demand structural changes: Apple must implement an “open app marketplace” architecture, and Meta must provide full interoperability for ad-bidding data with certified external partners.
Industry Repercussions and Global Signals
These rulings send shockwaves through the tech sector, signaling that EU regulators will force even the world’s largest platforms to unbundle services and foster open ecosystems. U.S. and Asia-Pacific regulators are watching closely, likely inspired to pursue similar investigations into platform monopolies and data porting.
Looking Ahead
By attaching both punitive and corrective measures, the EU demonstrates a holistic approach: punishing past abuses while mandating future competition safeguards. Observers expect Apple and Meta to appeal, but the remedies, if upheld, could permanently reshape digital business models, empowering smaller innovators and restoring power to consumers and advertisers.
